Why Tax Cuts Aren’t the Answer to Wage Problems

By

Josh Bivens

Nov 14, 2014 4:10 pm ET

The New York Times’ David Leonhardt is a sharp observer of American economic trends, but I think he took a wrong turn in his Monday piece on wages–and data released Wednesday by the Congressional Budget Office helps show why.

Mr. Leonhardt pointed out the dismal wage trends for the vast majority of American workers in recent decades and how it would be a heavy policy lift to reverse them. This seems right to me. But then he wrote:

“Washington could definitely do more to help growth: better infrastructure, a less burdensome tax code, a less wasteful health care system, more bargaining power for workers and, above all, stronger schools and colleges, to lift the skills of the nation’s work force.”

As they might say on “Seinfeld,” you can’t “yada yada” more bargaining power for workers.